Is Kesar Petroprod. overvalued or undervalued?

As of 18 July 2025, Kesar Petroprod. has moved from a fair valuation to very expensive. The company is currently overvalued, with a PE ratio of 29.42, an EV to EBITDA ratio of 20.75, and a Price to Book Value of 2.35. Compared to its peers, Kesar Petroprod. stands out with a significantly higher PE ratio than PTC India, which has a PE of 9.8 and is considered very attractive, and Lloyds Enterprises, which has a PE of 179.97 but is also classified as very expensive.
The valuation metrics indicate that Kesar Petroprod. is not only overvalued but also has a low ROCE of 0.47% and an ROE of 8.00%, suggesting that the returns generated are not commensurate with its high valuation. While the stock has outperformed the Sensex over the past year with a return of 60.46% compared to the Sensex's 0.51%, this may not justify the current high valuation levels.